Problem 7-51 (algorithmic) Question Help When you are young, invest in a Roth IRA. Instead of getting a tax break when you put money aside as in most 401(k) plans, savers in Roth IRAs get totally tax free withdrawals when they retire. You should use your time (e.g. 28 years) to build tax free retirement funds. To illustrate the possible benefit of a Roth savings plan. suppose you are 28 years old and you invest $1,300 per year before taxes of 24%) for 28 years. This means you will be investing 5928 per year after taxes are deducted. If your personal interest rate is 8% per year, you will have this amount in 28 years: 5988 (FIA, 8%, 28) = $94 195 when you retire. Compare this with a traditional IRA Which allows you to invest $1,300 per year tax free. You will withdraw all the accumulated funds in 28 years, as a lump-sum, and pay 30% income tax on your withdrawal. Which is the better plan? Click the icon to view the interent and annuity table for discreto compounding when the MARR is 8% per year, The future worth of savings under the traditional IRA plan after paying the 30% tax will be $(Round to the nearest dollar) 3 ir Enter your answer in the answer box and then click Check Answer 1 part remaining Clor All Check Answer More Info 1 X Que ge BV Ih sa afte hpar 3 ic ay 3 Compound Amount Factor To Find F Given A FIA sa 1 2 3 4 5 6 7 8 9 Single Payment Compound Amount Present Factor Worth Factor To Find F To Find P Given P Given F FIP PIF 1.0800 0.9259 1.1664 0.8573 1.2597 0.7938 1.3605 0.7350 1.4693 0.6806 1.5869 0.6302 1.7138 0.5835 1.8509 0.5403 1.9990 0.5002 1.0000 2.0800 3.2464 4.5061 5.8666 7.3359 8.9228 10.6366 12.4876 Uniform Series Sinking Present Fund Worth Factor Factor To Find P To Find A Given A Given F PIA AIF 0.9259 1.0000 1.7833 0.4808 2.5771 0.3080 3.3121 0.2219 3.9927 0.1705 4.6229 0.1363 5.2064 0.1121 5.7466 0.0940 6.2469 0.0801 ZAR Capital Recovery Factor To Find A Given P AIP 1.0800 0.5608 0.3880 0.3019 0.2505 0.2163 0.1921 0.1740 0.1601 ADA in Print Done 51 X Question More Info ang they get totall th savings after taxe 28 yo pers ich a Whic hpare this Jay 30% in n to of sal 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 2.3316 2.5182 2.7196 2.9372 3.1722 3.4259 3.7000 3.9960 4.3157 4.6610 5.0338 5.4365 5.8715 6.3412 6.8485 10.0627 0.4289 0.3971 0.3677 0.3405 0.3152 0.2919 0.2703 0.2502 0.2317 0.2145 0.1987 0.1839 0.1703 0.1577 0.1460 0.0994 16.6455 18.9771 21.4953 24.2149 27.1521 30.3243 33.7502 37.4502 41.4463 45.7620 50.4229 55.4568 60.8933 66.7648 73.1059 113.2832 7.1390 7.5361 7.9038 8.2442 8.5595 8.8514 9.1216 9.3719 9.6036 9.8181 10.0168 10.2007 10.3711 10.5288 10.6748 11.2578 0.0601 0.0527 0.0465 0.0413 0.0368 0.0330 0.0296 0.0267 0.0241 0.0219 0.0198 0.0180 0.0164 0.0150 0.0137 0.0088 0.1401 0.1327 0.1265 0.1213 0.1168 0.1130 0.1096 0.1067 0.1041 0.1019 0.0998 0.0980 0.0964 0.0950 0.0937 0.0888 Wer in Print Done AD